The Punjab government has announced a major shift in its approach to wheat procurement for the upcoming year, opting not to purchase wheat and introducing a new policy that redefines the procurement process within the province.
Under the new policy, which is currently in the final stages of preparation, the provincial Food Department will be eliminated from directly purchasing wheat. The change allows the private sector to engage directly with farmers to purchase wheat, potentially streamlining the process and reducing bureaucratic involvement.
Sources indicate that approximately 95% of Punjab’s farmers have already sold their wheat to middlemen. This practice has led to concerns and protests from various stakeholders, who cite manipulation by middlemen under the guise of representing farmers’ interests.
The decision to step back from wheat procurement is also financially motivated. By refraining from purchasing wheat, the Food Department anticipates avoiding substantial costs associated with interest payments and storage, which total around 400 billion rupees annually.
The new policy will also address the wheat pricing mechanism. It proposes that local wheat prices align with international market rates, ensuring price fairness and transparency. Furthermore, the policy suggests implementing uniform wheat prices across all four provinces, aiming for a more standardized approach to wheat pricing throughout the country.
Adding to the discourse, Federal Minister Rana Tanveer Hussain has assured that despite these changes, the wheat procurement targets for the year will be met. He also noted that the process for online applications for the supply of wheat bags is actively continuing, with ongoing adjustments to modernize and improve the procurement process.
